The Rental Housing Journal released a report in January that outlined several trends in 2022 that will impact the Rental Market in 2023. Here are the key takeaways from the article and things to consider when renting a unit in the current Raleigh Market.
Trend #1: More Options for Renters
With the vacancy index increasing, there are more options available for renters. Based on supply and demand, that means there will be more options available on the rental market and fewer individuals vying for those units.
Trend #2: Cautious Renters are Causing a Cooling in Demand
The pandemic caused many to move in with family and friends. As a result, most households had to “reform” in 2020 to weather the housing and rental market. In 2021, the number of households increased by more than 5 million, but that trend is cooling. The current renter is more cautious and aware of their budgetary limitations.
Trend #3: The Sun Belt Boom Cools
The Midwest is drawing renters due to affordable housing. The Sun Belt held that position during the pandemic, but the cooldown is due to increased rental rates and housing prices in the south. St. Louis, Indianapolis, Kansas City and Cincinnati are now among the top fastest growing cities for renters.
Trend #4: The Suburban Boom Continues
With remote work and hybrid flexibility, the epicenter of a city is no longer the only place to find a job — this realization has caused renters to shift to suburban areas. Currently, rental growth in the suburbs has outpaced that of the downtown areas.
Trend #5: Renters are in the Driver’s Seat
With renter confidence and supply improvements, the renter is back in control. This shift of power from the property owner to the renter means that 2023 will more than likely see a stabilization of rent levels. This bargaining power is further helped with remote work options, migration and the economy.
Need Help Navigating These Trends?
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